Motilal Oswal's research report on Eternal
Eternal reported 4QFY26 net revenue of INR172b, up 6% QoQ/196% YoY, above our estimate of 0.3% QoQ/181% YoY growth. Food delivery (FD) NOV came in at INR97.6b, above our est. of INR96.4b. Blinkit NOV came in at INR143.8b (up 96% YoY) vs. our est. of INR146b. For FD, adjusted EBITDA as a % of NOV margin was up 10bp QoQ at 5.5% vs. our estimate of 6.1%.
Outlook
We factor in gradual margin expansion, led by store maturity and operating leverage. Eternal should report a PAT margin of 2.4%/3.0% in FY27/28E. Our TP of INR340 implies a 34% upside from the current level. We reiterate our BUY rating on the stock.
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Eternal_29042026_Motilal Oswal